Toyota assures Trump after threat over Mexico plant

"Toyota Motor said will build a new plant in
Baja, Mexico, to build Corolla cars for U.S. NO WAY!" President-elect
Trump tweeted Thursday.

By Doug G. Ware

Japanese automaker Toyota on Thursday responded to a tweet from
President-elect Donald Trump that threatened the company with a "border
tax" if it opened a planned factory in Mexico. In its reply, Toyota said
its Mexico plant would not cost the United States any jobs and that it
complements operations in the United States. File Photo by Brian
Kersey/UPI

| License Photo

Toyota Motor Corporation assured President-elect Donald Trump on Thursday that a planned auto factory in Mexico won't take any jobs from the United States.

The automaker's response was prompted by a tweet from Trump
Thursday that read, "Toyota Motor said will build a new plant in Baja,
Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or
pay big border tax."

In a statement, Toyota clarified that the new
plant will be built in Guanajuato, Mexico, not Baja -- although the
company does have a plant there.

"Toyota has been part of the cultural fabric
in the U.S. for nearly 60 years. With more than $21.9 billion direct
investment in the U.S., 10 manufacturing facilities, 1,500 dealerships
and 136,000 employees, Toyota looks forward to collaborating with the
Trump Administration to serve in the best interests of consumers and the
automotive industry," Toyota said.

Keeping and bringing jobs to the United States
was a central issue in Trump's campaign, and the president-elect has
already made multiple moves aimed at accomplishing a growing domestic
labor market.

In its response, Toyota added
that its Mexico operations complement U.S. operations, particularly a
truck plant in San Antonio that produced 230,000 Tundras and Tacomas
last year. It also said $700 million was invested last year at plants in
Kentucky, Alabama, Indiana and West Virginia.

Asian governments and businesses have been
wary of Trump's coming administration, partly because he plans to cancel
the Trans Pacific Partnership -- a trade deal adopted last year aimed
at facilitating business among the United States and several Pacific Rim
nations.

Shares of Toyota (NYSE: TM) fell on the New York Stock Exchange in Thursday trading after Trump's tweet, before finishing at $120.44.